March 28, 2006
COMPETITOR: Spanish property “cools” after peak year
It is expected that house prices will cool down between the years 2006 and 2007, verifying a switch to the buyers’ market forecast for the current year, according to Spanish developers.
The house prices should go down between 5 and 10 percent in 2006 as construction slows down and the entry of the Spanish property buying homes is in direct competition with properties from Dubai, Cyprus and Bulgaria. This was according to the Association of Property Developers.
International property experts said that the economic growth will be slowing down this year and possible on 2007 mixed with rising interest rates while profits from property sales are most likely to descend. However, this didn’t deter the leading online specialist, PropertyInSpain.net, as it said that “lower house prices will make the Spanish properties more affordable and this will able to retain its leading market position in international real estate.”
According to spokesman, Terry Walker, the equity growth is still more likely seven percent or higher in high demand holiday home areas when prices like these are allowed to be derailed. “This is an outstanding average investment return for most Benelux and British buyers as their domestic property markets give not so satisfactory returns.”
But according to Gonzales Bernardos of Barcelona University, there will be a price increase of five percent this year and then suddenly, prices would drop down in 2007. Since 1998, prices have increased to 120 percent. Sales actually reached the highest point in 2005 when figures showed an average of 85 foreign buyers a day bought Costa properties.
Spanish developers said that their latest properties offer the best in high quality living – increased security, luxury finishes and high-tech smart homes technology. Many leading developers are starting to give Libertad co-ownership buying options and tax breaks, which was launched by online specialist, PropertyInSpain.net, this month with prices as much as 32,000 for a 2-bed apartment in the north of Costa Blanca.
Know more about Spanish property here.
Posted on: Spain
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